Muthoot Fincorp Secured NCD Bonds Tranche III will open for recruitment on January 12, 2024. Muthoot Fincorp Limited is a leading NBFC company that has emerged as a prominent gold loan company in India. We offer interest rates up to 9.75%. These NCDs are issued in 10 different series and have a validity period of 24 to 96 months. Interest is paid monthly, annually, or cumulatively, depending on the option you choose. Should you invest in Muthoot Fincorp NCD January 2024 issue series? What are the risk factors to consider before investing in such high-risk NCDs?
About Muthoot Fincorp Limited
These are systemically important NBFCs registered with the RBI that do not accept deposits.
The company is one of the prominent money lenders in the Indian market. Our personal and business loans backed by gold jewelry and ornaments are available to individuals who are not ready or unable to obtain formal credit in a timely manner, or who have no access to credit at all. It is designed to serve the business and personal purposes of individuals who cannot. unanticipated or other short-term liquidity requirements;
Muthoot Fincorp NCD – January 2024 Issue Details
| Subscription start date | January 12, 24 |
| Subscription end date | January 25, 24 |
| Issued securities name | Muthoot Fincorp Limited |
| Type of security | Secure, redeemable and non-convertible NCDs |
| Publication size (base) | 75 billion rupees |
| Publish size (option to keep beyond subscription) | 150 million rupees |
| Total publication size | 225 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | from me to x |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 24, 36, 60, 96 months |
| Interest payment frequency | Monthly, annual, cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | SMC Capitals Co., Ltd. |
| bond trustee | VALDMAN TRUSTEESHIP PRIVATE LIMITED. |
Muthoot Fincorp NCD January 2024 Prospectus Link
What is Muthoot Fincorp NCD – January 2024 Interest level?
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX | X |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | monthly | monthly | yearly | yearly | yearly | cumulative | cumulative | cumulative | cumulative |
| Period of employment (months) | twenty four | 36 | 60 | twenty four | 36 | 60 | twenty four | 36 | 60 | 96 |
| Coupon (% per year) | 8.90% | 9.15% | 9.35% | 9.25% | 9.50% | 9.75% | N.A. | N.A. | N.A. | N.A. |
| Effective yield (%/year) | 9.26% | 9.53% | 9.75% | 9.25% | 9.50% | 9.75% | 9.25% | 9.50% | 9.75% | 9.05% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,194 | 1,313 | 1,592 | 2,001 |
What is Muthoot Fincorp NCD – January 2024 Evaluation?
These collateralized NCDs are rated AA-/Stable by CRISIL, indicating that products with this rating are considered to have a high degree of security and very low credit risk with respect to timely repayment of financial obligations. I am.
What about the company’s profits?
Consolidated profit is as follows.
- Year ended March 2019 – 372.6 million
- Year ending March 2020 – 257.9 million yen
- Year ending March 2021 – 397.2 million yen
- Year ending March 2022 – 41.255 billion yen
- Year ending March 2023 – 64.642 billion yen
why invest Muthoot Fincorp NCD – January 2024?
- These NCDs offer high interest rates ranging from 8.9% to 9.75% with yields ranging from 9.25% to 9.75%.
- These are secure NCDs. If the company closes down or goes into financial trouble for any reason, NCD investors have priority repayment of the capital and interest backed by the company’s assets. Therefore, it is safe to invest in safe NCDs.
- The company has been making stable profits in recent years. This indicates that this company has the ability to consistently pay interest to his NCD holders or payments to creditors.
why not invest Muthoot Fincorp NCD – January 2024?
The risk factors for investing in these non-convertible bonds include:
- We are subject to RBI inspection and any adverse action taken could affect our business and operations.
- The Company’s operations require significant amounts of capital, and any disruption to its funding sources could affect the Company’s operations.
- A company’s financial performance is particularly sensitive to interest rate risk.
- See prospectus for complete risk factors.
Should you invest in Muthoot Fincorp NCD January 2024 issue?
- Muthoot Fincorp brings you secure NCDs in January 2024 issue. These NCDs offer high interest rates of up to 9.75%. These NCDs have a good credit rating of AA-/Stable by CRISIL.
- On the other hand, you need to understand the risks involved in investing in NCD bonds of NBFC companies. In the past, NBFC companies have delayed interest payments and capital repayments.
High-risk investors can invest in these NCD bonds after understanding all these risk factors.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
